The Tax Factor was created to educate individuals and small-business owners about taxes. Let’s face it, nothing in life is guaranteed except death and taxes. Okay, maybe that sounded pretty depressing but the goal of this blog is to help you find the information to learn how to make taxes work for you. Taxes can be extremely complicated but knowing about deductions and credits can save you thousands of dollars per year.

Dec 17, 2012

Reasons Why You Should Love EAs: John Sheeley, EA

Just in case you didn't
know (and I will keep reminding you).... Enrolled agents (EAs) are America's
Tax Experts. EAs are the only federally licensed tax practitioners
who specialize in taxation and also have unlimited rights to represent
taxpayers before the IRS.

I would like to
introduce the Man, the Legend, the Myth. Show your love for....John Sheeley!

John has been my mentor for the past
two years. He has helped me out big time during my years as a member of NAEA.

John Sheeley, EA thought
you may want to know about this:

The
Use of “Unpaid Interns” in Your Business

My tax and advisory practice is located in New York, with
many of our clients located in New York City. New York is an exciting place for
both students and those beginning their careers. New York is a center for the
arts, finance, fashion, technology, and startup companies in all industries.

Many companies offer“unpaid” internships to college students
or recent graduates. These interns are excited about the prospect of “real
work” in their industry with a small, growing company.

Regardless of whether the intern agrees with the
arrangement, the use of unpaid interns can easily violate federal and state
labor laws.

Generally, for an individual to be considered an unpaid
intern rather than an employee, certain specific criteria need to be met
according to the Department of Labor. Specifically, the ”intern” needs to be
part of a training program, and not be treated as an employee. The six criteria
necessary for an internship training program are:

1.The training, even though it
includes actual operation of the facilities of the employer, is similar to that
which would be given in a vocation school;

2.The training is for the benefit of
the trainee;

3.The trainees do not displace regular
employees, but work under close observation

4.The employer that provides the
training derives no immediate advantage from the activities of the trainees and
on occasion the employer's operations may actually be impeded;

5.The trainees are not necessarily
entitled to a job at the completion of the training period; and

6.The employer and the trainee
understand that the trainee is not entitled to wages for the time spent in
training.

Notably, the law is unsettled as to whether all the criteria
must be met or if only most of the criteria need to be met for an individual to
be considered an employee under the law.

Without careful documentation, an “intern’s” complaint to
the US or NY Department of Labor could result in the company being required to
retroactively pay the intern for all "volunteer" hours worked.

I am not an attorney. It might be advisable to have your
attorney draft a blanket memorandum of understanding for use between the
Company and any current or future interns. You might also discuss this issue
with your enrolled agent.

Who is
John Sheeley, EA?

2012 represented his 26th tax season advising
non-resident aliens and entrepreneurs in matters of tax planning. While his
current practice emphasizes advising non-resident aliens and foreign nationals
present in the United States on matters of taxation and finance, he also
possesses extensive experience in assisting individuals, the self-employed, and
closely held businesses in these same areas.

John possesses seventeen years’
experience as an Enrolled Agent, representing taxpayers before the Examination,
Collection, and Appeals branches of the Internal Revenue Service.

John's Specialties: US federal, state, and local income tax compliance for
Non-resident aliens living and working in the United States; US Citizens living
and working abroad; and Foreign Corporations operating branches and
subsidiaries in the United States.

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About Me

As a federally authorized Enrolled Agent and owner and CEO of the Brooklyn-based J.S. Tax Corporation, Jamaal Solomon provides tax services, business consulting, and IRS problem resolution. Delivering expert service, with his mission to “Take the fear out of taxes” for his clients, Jamaal has prepared federal and multi-state tax returns for individuals, partnerships, not-for-profit organizations, and corporations; has helped numerous tax-exempt organizations with their 501 (c)(3) applications; and has fielded a broad range of client and governmental inquiries on specific returns.
Licensed as an Enrolled Agent since 2007, Jamaal is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the IRS for audits, collections, and appeals. As part of the Enrolled Agent program, Jamaal completes an average of 24 hours of continuing professional education each year. He earned his MS in Taxation from CUNY Baruch in 2009 and a BS in Business Management from SUNY Stony Brook in 2002.